Submission for OMB Review; Comment Request; Extension: Rule 30e-2, 13033-13034 [2022-04800]
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Federal Register / Vol. 87, No. 45 / Tuesday, March 8, 2022 / Notices
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burden for 80 fund complexes to be
4,000 hours.
• Website disclosures of portfolio
holdings, of daily and weekly liquid
assets and net shareholder flow, of daily
current NAV, and disclosures of
financial support received by the fund,
the imposition and removal of liquidity
fees and the suspension and resumption
of fund redemptions. Commission staff
estimates a total annual hour burden for
320 funds to be 27,251 hours.
• For funds electing retail fund status,
written policies and procedures limiting
all beneficial owners of the fund to
natural persons. Commission staff
estimates a total annual hour burden for
2 funds to be 26 hours.
Thus, the Commission estimates the
total annual burden of the rule’s
information collection requirements is
293,516 hours.
The estimated total annual burden is
being decreased from 337,328 hours to
293,516 hours. This net decrease of
43,812 hours is attributable to a
combination of factors, including a
decrease in the number of money
market funds and fund complexes, and
updated information from money
market funds regarding hourly burdens,
including revised staff estimates of the
burden hours required to comply with
rule 2a–7.
Commission staff estimates that in
addition to the costs described in
section 12, money market funds will
incur costs to preserve records, as
required under rule 2a–7.1 These costs
will vary significantly for individual
funds, depending on the amount of
assets under fund management and
whether the fund preserves its records
in a storage facility in hard copy or has
developed and maintains a computer
system to create and preserve
compliance records.2 Commission staff
estimates that the amount an individual
fund may spend ranges from $100 per
year to $300,000. Based on a cost of
$0.0051295 per dollar of assets under
1 A significant portion of the recordkeeping
burden involves organizing information that the
funds already collect when initially purchasing
securities. In addition, when a money market fund
analyzes a security, the analysis need not be
presented in any particular format. Money market
funds therefore have a choice of methods for
maintaining these records that vary in technical
sophistication and formality. Accordingly, the cost
of preparing these documents may vary
significantly among individual funds. The burden
hours associated with filing reports to the
Commission as an exhibit to Form N–CR are
included in the PRA burden estimate for that form.
2 The amount assets under management in
individual money market funds ranges widely,
varying from below $50 million to well over $150
billion. We further note that the assets under
management figures were calculated based on net
assets at the fund level and not the sum of the
market values of the underlying funds.
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management for small funds,
$0.0005041 per dollar assets under
management for medium funds, and
$0.0000009 per dollar of assets under
management for large funds, the staff
estimates compliance with the record
storage requirements of rule 2a–7 costs
the fund industry approximately $33.0
million per year.3
Based on responses from individuals
in the money market fund industry, the
staff estimates that some of the largest
fund complexes have created computer
programs for maintaining and
preserving compliance records for rule
2a–7. Based on a cost of $0.0000132 per
dollar of assets under management for
large funds, the staff estimates that total
annualized capital/startup costs range
from $0 for small funds to $71.6 million
for all large funds.4 Commission staff
further estimates that, even absent the
requirements of rule 2a–7, money
market funds would spend at least half
of the amount for capital costs ($35.8
million) 5 and for record preservation
($16.5 million) 6 to establish and
maintain these records and the systems
for preserving them as a part of sound
business practices to ensure
diversification and minimal credit risk
in a portfolio for a fund that seeks to
maintain a stable price per share.
These estimates of burden hours and
costs are made solely for the purposes
of the Paperwork Reduction Act. The
estimates are not derived from a
comprehensive or even a representative
survey or study of Commission rules.
The collections of information
required by rule 2a–7 are necessary to
obtain the benefits described above.
Notices to the Commission will not be
kept confidential. An agency may not
3 The
staff estimated the annual cost of preserving
the required books and records by identifying the
annual costs incurred by several funds and then
relating this total cost to the average net assets of
these funds during the year. With a total of $328.5
million under management in small funds, $52.4
billion under management in medium funds and
$5.4 trillion under management in large funds, the
costs of preservation were estimated as follows:
((0.0051295 × $328.5 million) + (0.0005041 × $52.4
billion) + (0.0000009 × $5.4 trillion) = $33.0
million. For purposes of this PRA submission,
Commission staff used the following categories for
fund sizes: (i) Small—money market funds with $50
million or less in assets under management; (ii)
medium—money market funds with more than $50
million up to and including $1 billion in assets
under management; and (iii) large—money market
funds with more than $1 billion in assets under
management.
4 This estimate is based on the following
calculation: $0.0000132 × $5.4 trillion in assets
under management for large funds = $71.6 million.
5 This estimate is based on the following
calculation: $71.6 million in capital costs/2 = $35.8
million.
6 This estimate is based on the following
calculation: $33.0 million in record preservation
costs/2 = $16.5 million.
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13033
conduct or sponsor, and a person is not
required to respond to, a collection of
information unless it displays a
currently valid control number.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication by May 9, 2022.
Please direct your written comments
to David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, C/O John
Pezzullo, 100 F Street NE, Washington,
DC 20549; or send an email to: PRA_
Mailbox@sec.gov.
Dated: March 3, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–04884 Filed 3–7–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–437, OMB Control No.
3235–0494]
Submission for OMB Review;
Comment Request; Extension: Rule
30e–2
Notice is hereby given that, under the
Paperwork Reduction Act of 1995 (44
U.S.C. 3501 et seq.), (‘‘Paperwork
Reduction Act’’) the Securities and
Exchange Commission (the
‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension of the
previously approved collection of
information discussed below.
Rule 30e–2 (17 CFR 270.30e–2) under
the Investment Company Act of 1940
(15 U.S.C. 80a–1 et seq.) (‘‘Investment
Company Act’’) requires registered unit
investment trusts (‘‘UITs’’) that invest
substantially all of their assets in shares
of a management investment company
(‘‘fund’’) to send their unitholders
annual and semiannual reports
containing financial information on the
underlying company. Specifically, rule
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13034
Federal Register / Vol. 87, No. 45 / Tuesday, March 8, 2022 / Notices
30e–2 requires that the report contain
all the applicable information and
financial statements or their equivalent,
required by rule 30e–1 under the
Investment Company Act (17 CFR
270.30e–1) to be included in reports of
the underlying fund for the same fiscal
period. Rule 30e–1 requires that the
underlying fund’s report contain, among
other things, the information that is
required to be included in such reports
by the fund’s registration statement form
under the Investment Company Act.
The purpose of this requirement is to
apprise current shareholders of the
operational and financial condition of
the UIT. Absent the requirement to
disclose all material information in
reports, investors would be unable to
obtain accurate information upon which
to base investment decisions and
consumer confidence in the securities
industry might be adversely affected.
Requiring the submission of these
reports to the Commission permits us to
verify compliance with securities law
requirements.
Rule 30e–2, however, permits, under
certain conditions, delivery of a single
shareholder report to investors who
share an address (‘‘householding’’).
Specifically, rule 30e–2 permits
householding of annual and semiannual reports by UITs to satisfy the
delivery requirements of rule 30e–2 if,
in addition to the other conditions set
forth in the rule, the UIT has obtained
from each applicable investor written or
implied consent to the householding of
shareholder reports at such address. The
rule requires UITs that wish to
household shareholder reports with
implied consent to send a notice to each
applicable investor stating that the
investors in the household will receive
one report in the future unless the
investors provide contrary instructions.
In addition, at least once a year, UITs
relying on the rule for householding
must explain to investors who have
provided written or implied consent
how they can revoke their consent. The
purpose of the notice and annual
explanation requirements associated
with the householding provisions of the
rule is to ensure that investors who wish
to receive individual copies of
shareholder reports are able to do so.
The Commission estimates that the
annual burden associated with rule 30e–
2 is 125 hours per respondent. The
Commission estimates that there are
currently approximately 660 UITs that
file 1,320 reports per year. Therefore,
the Commission estimates that the total
hour burden is approximately 82,500
hours. In addition to the burden hours,
the Commission estimates that the
annual cost of contracting for outside
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17:25 Mar 07, 2022
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services associated with rule 30e–2 is
$20,000 per respondent, or $6,667 per
respondent that transmits reports
electronically, for a total cost of
approximately $5,280,198.
Estimates of average burden hours are
made solely for the purposes of the
Paperwork Reduction Act and are not
derived from a comprehensive or even
representative survey or study of the
costs of Commission rules and forms.
The collection of information under rule
30e–2 is mandatory. The information
provided under rule 30e–2 will not be
kept confidential. An agency may not
conduct or sponsor, and a person is not
required to respond to, a collection of
information unless it displays a
currently valid OMB control number.
The public may view the background
documentation for this information
collection at the following website,
www.reginfo.gov. Comments should be
directed to: (i) Desk Officer for the
Securities and Exchange Commission,
Office of Information and Regulatory
Affairs, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503,
or by sending an email to:
Lindsay.M.Abate@omb.eop.gov; and (ii)
David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549 or send an email to: PRA_
Mailbox@sec.gov. Written comments
and recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to www.reginfo.gov/public/do/
PRAMain. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function.
Dated: March 2, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–04800 Filed 3–7–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–121, OMB Control No.
3235–0110]
Proposed Collection; Comment
Request
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Form T–1
PO 00000
Frm 00111
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Form T–1 (17 CFR 269.1) is a
statement of eligibility and qualification
under the Trust Indenture Act of 1939
(15 U.S.C. 77aaa et seq.) of a corporation
designated to act as a trustee under an
indenture. The information is used to
determine whether the corporation is
qualified to serve as a trustee. Form T–
1 takes approximately 15 hours per
response to prepare and is filed by
approximately 2 respondents. We
estimate that 25% of the 15 hours (4
hours per response) is prepared by the
company for a total reporting burden of
8 hours (4 hours per response × 2
responses).
Written comments are invited on: (a)
Whether this proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden imposed by the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication by May 9, 2022.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
Please direct your written comment to
David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington,
DC 20549 or send an email to: PRA_
Mailbox@sec.gov.
Dated: March 2, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–04797 Filed 3–7–22; 8:45 am]
BILLING CODE 8011–01–P
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]]>Agencies
[Federal Register Volume 87, Number 45 (Tuesday, March 8, 2022)]
[Notices]
[Pages 13033-13034]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-04800]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-437, OMB Control No. 3235-0494]
Submission for OMB Review; Comment Request; Extension: Rule 30e-2
Notice is hereby given that, under the Paperwork Reduction Act of
1995 (44 U.S.C. 3501 et seq.), (``Paperwork Reduction Act'') the
Securities and Exchange Commission (the ``Commission'') has submitted
to the Office of Management and Budget (``OMB'') a request for
extension of the previously approved collection of information
discussed below.
Rule 30e-2 (17 CFR 270.30e-2) under the Investment Company Act of
1940 (15 U.S.C. 80a-1 et seq.) (``Investment Company Act'') requires
registered unit investment trusts (``UITs'') that invest substantially
all of their assets in shares of a management investment company
(``fund'') to send their unitholders annual and semiannual reports
containing financial information on the underlying company.
Specifically, rule
[[Page 13034]]
30e-2 requires that the report contain all the applicable information
and financial statements or their equivalent, required by rule 30e-1
under the Investment Company Act (17 CFR 270.30e-1) to be included in
reports of the underlying fund for the same fiscal period. Rule 30e-1
requires that the underlying fund's report contain, among other things,
the information that is required to be included in such reports by the
fund's registration statement form under the Investment Company Act.
The purpose of this requirement is to apprise current shareholders of
the operational and financial condition of the UIT. Absent the
requirement to disclose all material information in reports, investors
would be unable to obtain accurate information upon which to base
investment decisions and consumer confidence in the securities industry
might be adversely affected. Requiring the submission of these reports
to the Commission permits us to verify compliance with securities law
requirements.
Rule 30e-2, however, permits, under certain conditions, delivery of
a single shareholder report to investors who share an address
(``householding''). Specifically, rule 30e-2 permits householding of
annual and semi-annual reports by UITs to satisfy the delivery
requirements of rule 30e-2 if, in addition to the other conditions set
forth in the rule, the UIT has obtained from each applicable investor
written or implied consent to the householding of shareholder reports
at such address. The rule requires UITs that wish to household
shareholder reports with implied consent to send a notice to each
applicable investor stating that the investors in the household will
receive one report in the future unless the investors provide contrary
instructions. In addition, at least once a year, UITs relying on the
rule for householding must explain to investors who have provided
written or implied consent how they can revoke their consent. The
purpose of the notice and annual explanation requirements associated
with the householding provisions of the rule is to ensure that
investors who wish to receive individual copies of shareholder reports
are able to do so.
The Commission estimates that the annual burden associated with
rule 30e-2 is 125 hours per respondent. The Commission estimates that
there are currently approximately 660 UITs that file 1,320 reports per
year. Therefore, the Commission estimates that the total hour burden is
approximately 82,500 hours. In addition to the burden hours, the
Commission estimates that the annual cost of contracting for outside
services associated with rule 30e-2 is $20,000 per respondent, or
$6,667 per respondent that transmits reports electronically, for a
total cost of approximately $5,280,198.
Estimates of average burden hours are made solely for the purposes
of the Paperwork Reduction Act and are not derived from a comprehensive
or even representative survey or study of the costs of Commission rules
and forms. The collection of information under rule 30e-2 is mandatory.
The information provided under rule 30e-2 will not be kept
confidential. An agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless it displays
a currently valid OMB control number.
The public may view the background documentation for this
information collection at the following website, www.reginfo.gov.
Comments should be directed to: (i) Desk Officer for the Securities and
Exchange Commission, Office of Information and Regulatory Affairs,
Office of Management and Budget, Room 10102, New Executive Office
Building, Washington, DC 20503, or by sending an email to:
[email protected]; and (ii) David Bottom, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Cynthia
Roscoe, 100 F Street NE, Washington, DC 20549 or send an email to:
[email protected]. Written comments and recommendations for the
proposed information collection should be sent within 30 days of
publication of this notice to www.reginfo.gov/public/do/PRAMain. Find
this particular information collection by selecting ``Currently under
30-day Review--Open for Public Comments'' or by using the search
function.
Dated: March 2, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-04800 Filed 3-7-22; 8:45 am]
BILLING CODE 8011-01-P
